Analyst says lower than expected pricing of Apple iPhone XR will hurt earnings in fiscal 2019

Analyst says lower than expected pricing of Apple iPhone XR will hurt earnings in fiscal 2019
In the days leading up to yesterday's "Gather round" event held by Apple at the Steve Jobs theater, several analysts went back and forth on their expectations of the pricing for the iPhone XR. This is the lowest priced model of the three handsets that were unveiled yesterday by Apple, and it carries an LCD display instead of the OLED panels found on the iPhone XS and iPhone XS Max. It also has a lonely single camera on back, and does not include 3D Touch.

Last week, Goldman Sachs analyst Rod Hall called for the 64GB iPhone XR to carry a price tag of $849. As it turned out, Hall was $100 too high as Apple announced yesterday that it will sell the unit at a starting price of $749 ($37.41/month over 24 months) when it is released on October 26th. The 128GB model will cost $799 ($39.50/month over 24 months) and the 256GB unit will run you $899 ($43.66/month over 24 months). Even though the iPhone XR will be launched five weeks after the other two models, most analysts see it selling the most among the three new 2018 phones.

Even though the lower than expected price for the iPhone XR will benefit consumers, Hall's main concern is how Apple's earnings will be impacted. In his opinion, the device will cannibalize iPhone 8 and iPhone 8 Plus sales, reduce the average selling price of the iPhone line, and lower Apple's earnings over the next fiscal year. The analyst sees this happening even if a cheaper iPhone XR price helps the company sell a slightly higher number of handsets than expected. Besides unveiling the new iPhone line-up, Apple eliminated lower priced phones like the iPhone 6s and iPhone SE. It also dropped the Apple iPhone X.


Going against the usual Wall Street mantra of "buy the rumor, sell the news," Apple's shares are up $5.13 today (2.32%) to $226.26.

source: CNBC

Related phones

iPhone XR
  • Display 6.1" 828 x 1792 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A12 Bionic, Hexa-core, 2490 MHz
  • Storage 256 GB
  • Battery 2942 mAh(25h talk time)

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38 Comments

1. kucma

Posts: 86; Member since: Feb 01, 2017

Still struggling to see what value analysts bring to this world...

6. Phullofphil

Posts: 1763; Member since: Feb 10, 2009

I was just going to say that before they said the same thing about the higher price iPhone X. They have not a clue just clickbate because it’s an apple prediction

17. RoyalMike unregistered

Every year Apple used to have atleast one major feature to brag about. The first ever fps scanner in 5s, lte and 64 bit processor, game changing design in 6 with good tweaks, 3d touch in 6s, new home button and air pods in 7 along with fusion chip, face ID and full display design in iPhone X but surprisingly this year Apple has nothing special this year same design, same features only less, same chip just 15% minor extra processing power which will be used up in 120hertz touch response ( yeah still no 120 hertz refresh rate.) I think only iphone upgraders will buy iPhone this year. New consumers are going to buy Note 9 512 GB/ 8 GB, pixel, Sony or just wait for S10. Seriously Apple failed big time this year.

27. toukale

Posts: 624; Member since: Jun 10, 2015

LMFAO, I bet you are one of those individuals who said "no one is going to pay 1k for an iPhone" this time last year too. How did that turn out? I don't get why some people feel the urge to make a fool of themselves for anything Apple. The good news for you, you are not alone in this "unable to stay away from anything Apple."

34. TechNeck

Posts: 651; Member since: Aug 29, 2014

He's not lying though. This year was a complete letdown.

41. RoyalMike unregistered

I've bought each of the iPhones I mentioned, it's just I know the market better than you

8. fatTony

Posts: 114; Member since: Dec 20, 2012

Yup. How dare Apple offers a phone for $750? These "analysts" must be shortsighted because they are not accounting for all those accessories.

11. SyCo87

Posts: 300; Member since: Sep 19, 2013

They're more stockholders and investors, consumers need not worry.

15. Valinor

Posts: 174; Member since: Mar 26, 2013

Bro, you just analyzed analysts. They should write an article about your analyses and pay you. :p

23. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

The analyst was right, I was waiting to buy iPhone 8 plus after the price reduction but iPhone Xr is very tempting as well. Not sure whether it is worth to pay extra for iPhone Xr

32. Boast_Rider

Posts: 535; Member since: Sep 14, 2017

Most of the really good analysis is actually kept inside, and these kind of bogus analysis is exposed to the world. Most of these times, the company itself does the opposite so they can reap profits when you short. For example, I'm fairly sure GS would be long on Apple after this analysis. Source: worked at Goldman Sachs in the past.

2. Sakeem

Posts: 857; Member since: Sep 05, 2012

They will make up for it in accessories. No worries Mr. Hall.

5. Huh101

Posts: 20; Member since: Feb 10, 2017

You know how many of those damn dongles I've went through with my iPhone lol.

3. Panzer

Posts: 282; Member since: May 13, 2016

By the time you buy a fast charger, cable and dongle you are just short twenty five dollars of a hundo. No need to despair Wall Street.

4. whatev

Posts: 2218; Member since: Oct 28, 2015

This one will sell wildly, actually I’m tempted but I think I’ll pick the XS

7. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

Here we go again. Apple love them or hate them will break all sales records again. People love what they love that is plain and simple. Sometimes I think these guys say this stuff in order to con people into really buying more Apple products so that the stock they, the analyst, own makes a killing. You know if tell the Apple Fans their brand will fail only incites them to proving your wrong because they go out and support their brand. Its like telling, true,Star Wars Fans that Luke Skywalker, Han Solo and Princess Lelia suck and that admiral Holdo is the greatest character ever - so buy her action figure. What do you think will happen? Hint the OT action figures will sell like gang busters ( OT fans will support the OT characters with their wallets) while hundreds of Haldo will be found at the Krogers 99 cent bin

9. CreeDiddy

Posts: 2150; Member since: Nov 04, 2011

Apple really messed up the pricing on the XS Max

10. OneLove123

Posts: 976; Member since: Aug 28, 2018

Lower than expected? That thing is overpriced to begin with.

12. kevin007in

Posts: 327; Member since: Oct 28, 2015

lower?? hahaha . its not even worth $500. come on now

14. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

If you have an X, there's no real reason to upgrade this year. Apple is really ripping y'all off this year. I know the iFlock won't care, but I just can't believe this is what Apple dropped this year. Props to the watch though, it's an actual true upgrade. The 10R 720P screen is a fkn joke, it's 2018 for crying outloud Apple. Liquid Retina my ass, more like Liquid Residue. I simply refuse to turn a blind eye to this iCrap for 2018. The R should stand for refurbished. iPhone 10 (R)efurbished. Midan, fulz, marvs, Nate, and whatev...the butt burn ointment is located in the pharmacy aisle at 281 City Island Ave, Bronx NY 10464

18. kucma

Posts: 86; Member since: Feb 01, 2017

Easy man! You are not that hars usually! :) I was looking forward to upgrade this year especially due to dual Sim. Now there are some rumours it won’t be supported in New Zealand. If that turns out to be true I really can’t justify to spend the money they want on these ‘upgrades’.

21. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

I’m just shocked, and disappointed in Apple giving so little, yet charging so much. Look at the XS for $1000, and the Note 9 for $1000. It’s like charging the same for a used Camry, and a new E350 Benz. I can’t rock with Apple on this, and as a consumer of its products, I have the right to voice my opinion. Other than the watch, which I really like...2018 is whack for Apple. I don’t care who I piss off either, I just tell it like it is. Samsung killed it this year, all the way around. Watch, S, Note, and Tab S4.

24. kucma

Posts: 86; Member since: Feb 01, 2017

Yea same here. Plus we need to add anywhere from $200-400 depending on model around here. And then you look at the Note 9 which has been highly updated since Note 7 yet the price remained just about the same.

25. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

Another thing that bothers me, is Apple charging more, but omitting and taking away essentials. They omitted fast charging, and took away the dongle, while charging more. That’s ridiculous no matter how you slice it. For the price, and even cheaper, fast charging should be in the box.

29. redmd

Posts: 1929; Member since: Oct 26, 2011

"Apple giving so little, yet charging so much" so true. It's a good thing there's competition. In 2025 iPhones will cost as much as $2000.

30. Leo_MC

Posts: 7272; Member since: Dec 02, 2011

The problem is not the price or the existence of a dongle (one either buys it or not) but the fact that iOS does nothing to make use of that huge display. It's just an ordinary phone with bigger display. I understand: you can only put a big battery in a big device; you have a big device with a big screen, why don't you make it more useful then? Put a freaking split screen and other stuff like that! Nice camera but let me just drag and drop the picture into my email app, if I'm crazy enough to give you the money I would pay for a great ultrabook. That's why this year's iPhones are uninteresting.

31. Whitedot

Posts: 781; Member since: Sep 26, 2017

@darkkjedii It seems Apple is more more breaking away from "afordable" model if you say so by eliminating old line of product or replacing with a single "ardordable" product for "masses" while pushing ultra expensive line even further behind 1000 mark. Apple is confident people will shell out thousants to get new xs's. Odly enough this will happen. There is enough wealth in the world that can afford it.

33. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

I can't believe they pulled this crap bro. This is plain crazy, and the flock will not speak with their wallets.

35. whatev

Posts: 2218; Member since: Oct 28, 2015

Lol, I love that I’m present in your mind everyday, makes me feel so flattered to have fans here, anyways I can’t say the same about you, your YouTube channel is cringy af, I’d would delete it if I were you, I know some people who doesn’t care about embarrassment despite they have all the reasons to be embarrassed. Anyways, you’re thinking like all the iPhone owners have the iPhone X or 8 and that’s not the case, many people are upgrading to one of those beauties this year, including me, I don upgrade every year since it’s pointless, keep ranting all you want you narcissistic bad boy, I don’t care about an old low selfsteem man throwing shade at me, life is beautiful for me like to spend my time for an old person fighting on the comment section like a teenager, so tragic *smh

36. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

Yet you posted that long thought out, drawn out post, and stopped by my channel lol. Mmmhmmm. Mama know baby...mama know.

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